Sedona turned down in royalty lawsuit

A U.S. District Court has ruled that software developer Sedona Corp. is not entitled to royalty payments for enhancements made to its customer-management software and sold by another company.

King of Prussia-based Sedona had licensed, to software provider Open Solutions Inc., a program called Intarsia that would help financial institutions such as banks and credit unions track and manage customer information.

Open Solutions, of Glastonbury, Conn., hired another company to rewrite the Java-based program, which would then be packaged in a suite of software.

In a ruling filed Wednesday in U.S. District Court in Connecticut, the court turned down Sedona's claims that it was still entitled to royalty payments. The court said that the license enhancement was not subjected to royalties, based on the two companies' agreement.

Meanwhile, the court agreed with Sedona that it was not in breach of contract for demanding the payment.

Anita Primo, Sedona vice president and CFO, said that the company was disappointed with the ruling and would consider an appeal.

A spokeswoman for Open Solutions Inc. could not immediately be reached for comment.